Income concept

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The SPSD/M estimates include micro-level income data available from the SLID, the CIS, the T1FF and EI claims that are verified against auxiliary macroeconomic and demographic information available at the time of database production. In addition to this validation process, the SPSD/M micro-data can be further adjusted to more closely match macroeconomic income concepts. For example, to reflect the MEA concept that current income accrues from productive activity, items such as capital gains can be excluded. As well, while the SPSD/M includes income received from other households in Canada, such as alimony payments, these transactions are currently excluded from the presentation of macroeconomic household income on a net basis as they occur within the same sector of the economy.

Differences between the SPSD/M and the MEA can remain, however, in cases where direct adjustments are more difficult to apply. For example, household pension income in the MEA is recorded as compensation to employees when it is contributed by an employer or an employee through withholding taxes rather than when it is received by an employee as pension benefits. As a result, MEA compensation of employees includes both wages and salaries as well as employers’ social contributions, which includes employers’ contributions to registered pension plans as well as premiums for Employment Insurance, the Canada/Quebec Pension Plan, and a number of other employers’ contributions.